Citing unnamed sources, the Journal reported that the tablet's screen will be smaller than 8 inches. The iPad's screen will measure between 7 and 8 inches diagonally, according to Bloomberg, significantly smaller than the current iPad's 9.7-inch screen.

In a note released on Tuesday, Topeka Capital Markets analyst Brian White noted that a smaller-sized iPad could expand Apple's reach into emerging markets such as China, while also appealing to price sensitive customers in the U.S. and Europe. A smaller iPad would also prove popular in the education market, he added.

Rivals Amazon(AMZN) and Barnes & Noble (BKS) both tout 7-inch tablets while Google's(GOOG) new Nexus tablet is also 7 inches.

Apple has not yet responded to TheStreet's request for comment on this story.

Shares of Apple, which this week hit $600 for the first time since April, gained 4.09% to close at $605.88 on Friday.

On Monday Microsoft(MSFT) confirmed that it will cost users $39.99 for Windows 8 Pro if they upgrade from a previous version of Windows.

When Windows 8 becomes generally available, users running Windows XP, Windows Vista, or Windows 7 will be able to download a copy of Windows 8 for $39.99, according to a Microsoft blog post .

Microsoft has not given a specific date for when Windows 8 will be generally available, but it is aiming to have the software on the market in time for the holidays. There have also have been rumors that it could become available in October.

Shares of Microsoft ended the week down 1.68% at $30.18.

Also on Monday, semiconductor specialist Micron Technology (MU) announced a $2.5 billion deal for bankrupt Japanese chipmaker Elpida.

The Boise, Idaho-based company also announced an agreement to acquire a 24% stake in Taiwanese chipmaker Rexchip Electronics . Thanks to the deals, Micron will roughly double its capacity to make DRAM chips and strengthen its relationship with Apple.

In a Facebook(FB) blog post on Tuesday, Hastings said that the company's monthly viewing exceeded 1 billion hours for the first time ever in June. The CEO expects a couple of upcoming shows to increase viewership. "When House of Cards and Arrested Development debut, we'll blow these records away," he wrote.